Construction-Can go as high as for Monthly P&I

For a construction only, 11 month interest only, balloon payment in 12 month, where there is no set draw schedule except that draws are based on percentage of completion.

The LE/CD is based on the assumption that 1/2 of the loan amount is drawn at origination. Based on the above terms, in theory the the monthly principal & interest could max out in month 2 if all the funds were drawn. Correct?

Just trying to make sure it is correct to disclose "Can go as high as $x,xxx in month 2".

Thanks in advance.

It can max out in month one or even day one for that matter. We use Month 1.

Thanks, I'll have to find out if the loan system is inserting month 2 or if the processor is keying it in.

Because our system determines the interest by the number of days in the month, the LE I was looking at disclosed the 2nd month because March has 31 days and so the interest payment would be more than in the 1st month - February with 28/29 days.

I'd like to add another question to this thread...

For Monthly Principal & Interest > Can go as high as $X,XXX in month 2 - can month be used or must mo. be used?

I couldn't find anything to address this specifically, except that for the disclosure in this area it references the way to disclose the Product and uses the designation "mo."

It would be "mo."

Pretty unusual for TRID disclosures to not ignore months with a different number of days.

Thanks for the help!